"Enter "carpooling for homes." Austin Allison, cofounder and CEO of property brokerage Pacaso, sees the growing trend of co-ownership as a kind of life hack, the way you would with a commute. "Co-ownership is like carpooling for homes," he tells Fortune. "Co-owning with family or friends offers a solution, lowering the entry barrier and addressing affordability challenges.""
"Opendoor Technologies, an online company that buys and sells residential real estate, found first-time homeownership in co-buying is becoming more common among first-time homebuyers, particularly millennials. Jennifer Patchen, an Opendoor real estate broker, says this should come as no surprise, given it's millennials who introduced crowdfunding and are also notorious for wanting to generate passive income and work side hustles. "Millennials are often the ones looking for alternative strategies for funding a home and are really leading the charge for redefining traditional homeownership," Patchen tells Fortune. "The primary drive of co-ownership is cost saving. Co-buying allows millennials to buy now, securing an affordable place to live in the present, while setting up a solid investment for the future.""
"Another report by JW Surety Bonds shows nearly 15% of Americans have co-purchased a home with a person other than their romantic partner-and another 48% would consider it. The market has grown so unaffordable because of mortgage rates that reached two-decade highs in late 2023, and home prices trended up nationwide, a spokesperson with JW Surety Bonds, which provides bond and insurance services to mortgage brokers, contractors, and other businesses, tells Fortune."
The housing market is the least affordable since 1984, and baby boomers now hold the cash and equity that make buying easier for older generations. The median age of a U.S. homeowner is 59 years. Co-ownership of homes is emerging as a solution to affordability challenges, framed as "carpooling for homes" and promoted as a way to lower entry barriers. Data show first-time co-buying is growing among millennials, who use crowdfunding and side hustles to fund purchases. Surveys indicate meaningful willingness to co-purchase, while high mortgage rates and rising prices drive market unaffordability.
Read at Fortune
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